Posts in category investments

Hitachi Energy is the best play on transmission tailwinds. Buy for target price of ₹24500 (18% upside): ICICI Securities

Hitachi Energy (Hitachi) reported an EBITDA of INR 1.5bn, thrice its base quarter last year. Gross margin expanded by 650bps YoY to 43% in Q1FY26 while EBITDA margin expanded 700bps YoY to 10.5% (-200 bps QoQ). As a result, profit came in at INR 1.3bn, + 62% YoY. Order inflow (OI) surged to INR 113bn, as the company booked an HVDC project in the quarter (on expected lines), pushing the order backlog (OB) to a record INR 291bn (+3.4x YoY). Notably, ex-HVDC orders grew ~20% YoY, reflecting strong demand. Hitachi is investing INR 20bn to expand capacity and cater to rising demand for transmission equipment. It remains the best play on transmission tailwinds, in our opinion. We maintain BUY with a revised TP of INR 24,500 (earlier INR 18,000) rolling forward to FY28E

Sobha Ltd is on track to achieve robust presales in FY26! Buy for target price of ₹2113 (35% upside): Yes Securities

Sobha reported highest ever quarterly presales of Rs20.79Bn, a growth of 11%YoY & 13%QoQ. The performance was driven by two launches viz., Sobha Aurum, Noida and 4 towers of Marina One, Kochi. ~80% of Aurum has been sold in the first quarter itself generating sales of Rs8.34Bn.

Mold-Tek Packaging is poised for PER re-rating post robust earnings growth. Buy for target price of ₹906 (19% upside): IDBI Capital

We believe MPL is poised for PER re-rating post robust earnings growth for consecutive quarters and promising outlook by the management. Maintain BUY with a TP of Rs906 (earlier Rs715), assigning 25x PER on FY27E

V-Mart Retail is seeing margin betterment & continued network expansion; maintaining Buy for target price of ₹1208 (50% upside): Anand Rathi

Lower Limeroad losses, greater operational efficiencies and better offline margins drove a 166bp y/y higher EBITDA margin to 14.3% (~200bps above ARe and consensus). SSSG was 1%, hurt by advance Eid sales, an early monsoon and market sluggishness. Vmart’s apparel ASP grew 2%. However, Unlimited’s fell 3% led by focus on more value offerings.

Huhtamaki India Ltd’s premium product to drive growth, near term issues transitory in nature, Maintain BUY for target price of ₹348 (60% upside): SMIFS

Huhtamaki’s Q2CY25 performance was better than our estimates. Revenue declined YoY by ~4% but grew by 0.4% QoQ because of lower volumes. Gross margins expanded by 370bps YoY & 44bps QoQ to ~34% in Q2CY25. EBITDA grew by ~33% YoY & by ~10% QoQ largely because of focus on key product portfolio and cost efficiency measures. Sluggish urban demand is impacting FMCG volumes coupled with higher inflationary pressure, early monsoon and increase in commodization rate of products led to muted topline.

Shyam Metalics offers a unique play in the Indian metals space. Buy for target price of ₹1080 (15.4% upside): JMFICS

Shyam Metalics offers a unique play in the Indian metals space, with a combination of a) increasing contribution from finished steel and valued added segments and b) diversified business across the steel value chain. Capital allocation towards niche business segments augur well for the company

Review of National Securities Depository Ltd (NSDL) IPO by SBI Securities

National Securities Depository Ltd (NSDL) is a SEBI-registered market infrastructure institution and a critical enabler of India’s capital markets, offering secure and efficient depository services to investors, issuers, and intermediaries. As of Mar’25, NSDL serviced 99.99% of foreign portfolio investor (FPI) assets in dematerialised form, reflecting its dominance in the institutional segment. With an 86.8% share of total demat value and a presence across 99.34% of India’s pin codes and 194 countries, NSDL demonstrates both depth and reach.

DLF is replicating its playbook in Mumbai, with its maiden launch – DLF West Park. Buy for target price of ₹988 (16% upside): HDFC Sec

Over the years, DLF has created a new benchmark and addresses in the NCR luxury real estate market, with differentiated offerings like Camellias, Arbour, and Privana. Whilst it had the advantage of owning large superbly-located land parcels, it was able to realize high value by building new infrastructure and connectivity to these land parcels and delivering top quality homes to its customers

DIXON TECHNOLOGIES has shown strong execution & has growth triggers ahead. Buy for target price of ₹21900 (36% upside): BoB Caps

DIXON Q1 performance beat on all fronts. Revenue/EBITDA were 21%/23% ahead of our estimates. Revenue grew 95% YoY/25% QoQ, led by a strong 121% YoY growth in the Mobile & EMS division. The non mobile division saw a revenue decline of 15% YoY/25 QoQ. EBITDA margin was flat YoY (-50bps QoQ) to 3.8% (in line with estimates), absolute EBITDA grew 95% YoY/9% QoQ

Sunteck Realty is an interesting play on Mumbai’s high value real estate market. Buy for target price of ₹650 (52% upside): PL Capital

Sunteck Realty (SRIN) reported strong pre-sales (31% YoY) and steady collections (up 3% YoY) in Q1. SRIN’s proven ability to market ultra-luxury projects, aggressive and multi-pronged land acquisition capabilities in various micro markets across Mumbai Metropolitan Region (MMR) is an interesting play on Mumbai’s high value real estate market. We expect the company’s presales to grow to +20% CAGR over FY25-27E, aided by ongoing projects and strong new launches pipeline including the Dubai JV project. Further given likely strong cash flow generation, we see SRIN to step up new project additions which will be a key catalyst for stock performance. Our FY26E and FY27E broadly remain unchanged. Maintain ‘Buy’ rating with TP of Rs. 650/share

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